Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

8. Will improving customer service result in higher stock prices for the companies providing the better service? When a company's satisfaction score has improved over

8. Will improving customer service result in higher stock prices for the companies providing the better service? "When a company's satisfaction score has improved over the prior year's results and is above the national average (75.7), studies show its shares have a good chance of outperforming the broad stock market in the long run." The following satisfaction scores of three companies for the 4th quarters of two previous years were obtained from the American Customer Satisfaction Index. Assume that the scores are based on a poll of 60 customers from each company. Because the polling has been done for several years, the standard deviation can be assumed to equal 6 points in each case.

Company Year 1 Year 2
Rite Aid 73 76
Expedia 75 77
J.C. Penney 77 78

d) When conducting a hypothesis test with the values given for the standard deviation, sample size, and , how large must the increase from year 1 to year 2 be for it to be statistically significant? The answer is 1.80.

e) Use the result of part (d) to state whether the increase for J.C. Penney from year 1 to year 2 is statistically significant.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Linear Programming With Applications

Authors: Bernard Kolman, Robert E Beck

2nd Edition

0080530796, 9780080530796

More Books

Students also viewed these Mathematics questions

Question

When should you avoid using exhaust brake select all that apply

Answered: 1 week ago